Finland—Commitment to Development Index

The Commitment to Development Index ranks 27 of the world’s richest countries on policies that affect people living in poorer nations. This is the country report for Finland. For results of all countries, visit the main CDI page.

Overall

Finland ranks 3rd on the Commitment to Development Index. It loses its previous year’s top position to Denmark but still performs above average on all components except migration, with a leading position in finance.
SCORE:
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Aid

In 2016, Finland provided 0.44% of its GNI for development assistance. This is below the international commitment of 0.7% GNI and significantly lower than in previous years (when it provided between 0.54 and 0.59% of GNI). As several CDI countries have increased their contributions to ODA, Finland’s aid component ranking has dropped from 7th to 10th place. The quality of Finland’s aid program, however, is above average. Finland has good aid policies for fostering institutions in the recipient countries, and its aid is transparently reported. Finland could reduce the administrative burden it places on its ODA partner countries.
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Finance

As in the previous year, Finland tops this component with its role-model financial policies. On the financial secrecy subcomponent, Finland receives the highest score (tied with Denmark) by being a moderately secretive jurisdiction. It has efficient tax and financial regulations and a high degree of international cooperation on tax and financial matters. It could improve, however, by requiring companies to make ownership details publicly available. Finland also has good international investment agreements, which take into account the public policy goals of its investment partners and include a sustainable development approach. With regard to its institutional commitments, Finland also receives a good score due to its compliance with the OECD anti-bribery convention. It is also a member of the institutional frameworks that are part of the policy inputs indicator.
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Technology

Despite a slight decrease in its performance, Finland is still scoring above average on the technology component. Its current 10th place standing is mainly due to its sound scoring on both subcomponents. Finland’s government support for research and development is relatively high and its provision of incentives for business R&D adequate. In 2016, the Finnish government provided 0.86% of its GDP (weighted) to research and development and offered relatively high incentives for business R&D. Finland could step up its efforts in the diffusion of technology to developing countries through better policies on intellectual property rights. It could do more to facilitate knowledge sharing, especially by putting in place less strict database protection rights and anti-circumvention rules that are more appropriate to the levels of economic development of partnering ODA countries.
SCORE:
= other countries’ scores

Environment

While Finland has good environmental policies, its ranking and scoring have dropped from previous years. Finland scores relatively high due to its sound performance on all indicators, except for the fishing subsidies indicator. It has a role-model commitment to combatting climate change through its low rate of greenhouse gas emissions. Finland reports a significant reduction of greenhouse gas emissions, although it has fallen behind a few countries in this regard relative to its performance in previous CDI editions. By increasing its commitment to biodiversity treaty obligations, Finland could improve its score even further. As Finland does not report the amount of its fishing subsidies, however, it is penalized for the lack of transparency by being assigned the highest subsidy rate.
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Trade

As in the previous year, the performance of Finland’s trade policies is above average. Finland imposes relatively few restrictions on imports, encouraging trade across borders. Finland also gets credit for providing relatively low agricultural subsidies—the second lowest of all European countries—and for imposing fewer tariffs on average than other CDI countries. Finland could do more to facilitate services in trade, however, by imposing fewer restrictions on service providers from other countries.
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Security

At rank 3, Finland has a top position on the security component, despite not having signed the Convention on Cluster Munitions. Finland contributes significantly to international peacekeeping efforts, both financially and with personnel, and is also active in patrolling global sea lanes. Furthermore, Finland’s security policies are development friendly because it exports few arms.
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Migration

Finland’s performance on migration policies is average, despite its having one of the best integration policies. After Sweden, Portugal, and New Zealand, its integration policies are fourth best out of all of the CDI countries (MIPEX score). Finland also scores above average by accepting many students from developing countries. Finland could do more, however, in its general openness toward migrants. It could increase its commitment to international burden sharing by accepting a larger share of asylum seekers and refugees. The percentage of asylum applications it approves is significantly below average. Furthermore, Finland can improve its commitment to international frameworks by ratifying the Migration for Employment Convention and the Migration for Employment Convention.
SCORE:
= other countries’ scores